GST 2.0 will ease tax compliance and boost economic growth
NEW DELHI New Delhi: Goods and Services Tax (GST) is one of the major economic reforms carried out in India in the last decade, replacing the value added tax (VAT) system. It paved the way for economic growth, lower logistics costs and ease of doing business. Now the central government is focusing on GST 2.0, which will further simplify tax laws, enhance tax simplification and adopt technology. In Budget 2024, Finance Minister Nirmala Sitharaman emphasized on further simplifying tax laws and adopting technology.
The Finance Minister proposed some measures in the budget, which indicate that the new GST 2.0 will open up business opportunities and further ease compliance in tax laws, thereby boosting economic growth. According to tax experts, GST 2.0 will be a major change for the tax system in India. It will not only be an update of GST laws but will also make the GST system more transparent, simple and business-friendly and boost the country’s economic growth.
With GST 2.0, long-standing demands of industries like tax simplification will also be resolved. With GST 2.0, the tax process will be easier. This will support high growth rate and increase India’s competitiveness globally. GST collection in August 2024 stood at Rs 1.75 lakh crore, which is about 10 percent more than the GST revenue of Rs 1.59 lakh crore in August last year. Collection in the first five months of the financial year increased by 10.1 percent to Rs 9.14 lakh crore. Net GST revenue till August was Rs 8.07 lakh crore, which is 10.2 percent more than last year. Gross GST collection in the financial year 2023-24 was Rs 20.18 lakh crore. It increased by 11.7 percent compared to last year.
